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It
is agreed by and between First United
Bank hereinafter sometimes referred to
as "we", "us", or "Bank",
and the undersigned person(s) whose name(s)
appear on the FirstReserve application,
sometimes referred to as "you", "your",
or "Borrower" that is the line
of credit, known as FirstReserve is approved,
accepted or used the following terms
and conditions apply: |
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YOUR
LINE OF CREDIT
Your credit account is a revolving line
of credit. You may not request advances
in excess of your line of credit. We may
increase or decrease the credit limit at
our discretion at any time with or without notice
to you. |
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YOUR
PROMISE TO PAY
When using your checking account for an
advance you promise to pay the total amount
of any advance under this agreement plus
any finance charges that may be due. If
you fail to pay any amount you owe as under
this agreement and we refer the matter
for collection by an attorney or if we
have to collect through proceedings in
probate or bankruptcy, or if we have to
sue you, you agree to pay all actual court
costs incurred by us and all attorney's
fees assessed by the court. |
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YOUR
CREDIT LIMIT
You may make advances on your FirstReserve
line of credit up to the established credit
limit unless the account is terminated
as set forth herein or unless checks are
dishonored for the reasons herein: (1)
the amount of the check would exceed your
established credit limit; (2) you are delinquent
in making payments to us under the payment
plan explained below; (3) you are in default
under any terms of this agreement; (4)
you are in default under any obligation
to this bank; (5) your account is canceled
for any reason stated herein. You may not
make advances on the account which would
make the outstanding principal balance
on your FirstReserve line of credit more
than such maximum amount we specify from
time to time. This is your credit line.
You can apply for a change in your credit
line annually. Your credit line will be
reviewed and renewed annually unless terminated
by prior written notice at least thirty
(30) days before such action. From time
to time, we may require current financial
information to evaluate your request for
an increase in your credit limit. |
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OVERDRAFT
PROTECTION
By signing this agreement, you agree the
FirstReserve line of credit may be used
as overdraft protection on your designated
regular checking account (demand deposit
account). In such an event, a minimum advance
of $100.00 per overdraft shall be advanced
to your regular checking account, not to
exceed the credit limit on your FirstReserve
line, then in effect. You may activate
your FirstReserve account protection by
simply writing a check for more than you
have in your designated checking account.
When we pay the check, we will use the
balance in your checking account first,
then debit your credit line in increments
of $100.00 and deposit the funds into your
checking account to cover the check(s).
The remainder of the last $100.00 advanced
will be the new balance in your checking
account, you can tell us ahead of time
and we will advance the amount needed from
your FirstReserve line to your designated
checking account in increments of $100.00. |
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FINANCE
CHARGE
A finance charge is imposed upon all amounts
outstanding for each day such amounts remain
outstanding. Your finance charge for the
billing period is computed on the average
daily balance of your account for the billing
cycle. To figure your average daily balance,
we start with your balance at the beginning
of each day. Then we add any cash advance
for that day and subtract credits or payments
for that day. We also subtract any unpaid
FINANCE CHARGES. This gives us your daily
balance. Then we add all the daily balances
and divide by the number of days in the
billing period. This gives us your average
daily balance. We multiply your average
daily balance by a daily periodic rate
as indicated below:
The ANNUAL PERCENTAGE RATE for your FirstReserve
line of credit is a variable rate based
on the highest Prime rate published in
the Southwest Edition of the Wall Street
Journal on the last business day of the
month, plus 2.9%. This variable rate will
change and be effective without notice
to you, beginning the first day of the
monthly billing cycle following a rate
change.
The ANNUAL PERCENTAGE RATE for your FirstReserve
line will increase or decrease as the published
highest Prime Rate in the Southwest Edition
of the Wall Street Journal increases or
decreases; however, such ANNUAL PERCENTAGE
RATE will never go above the maximum rate
allowed by law. The effect of any such
increase will be an increase in the amount
of interest you pay on the amount outstanding
on your FirstReserve line of credit. |
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YOUR
PAYMENT OPTIONS
We will automatically deduct monthly payments
from your designated checking account on
the 10th day after your statement cycle
has been sent in the amount of five (5)
percent of the current outstanding balance,
plus current and unpaid finance charges,
fees and principal amounts exceeding your
maximum line of credit, subject to a $25.00
minimum payment. If you owe less than $25.00,
the payment will equal the total amount
outstanding. By signing this agreement,
you promise to keep sufficient funds in
your designated checking account on the
statement due date to meet the amount of
your payments. Should there not be sufficient
funds in your checking account on the statement
date to cover the payment, you will be
in default. In such event, we may, but
are not obligated to, terminate your FirstReserve
account. If there are insufficient funds
to make a payment, we may, but are not
required to, advance the amount needed
to make a payment from your FirstReserve
line in increments of $100.00. Our failure
to exercise our right to terminate your
FirstReserve account, or to make the advances
from your credit line to make any required
payment, shall not constitute a waiver
of or right to terminate your FirstReserve
account upon any default. |
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You
may make additional principal payments
from time to time or you may pay all
your outstanding balance at any time
without penalty by sending us a check
or through personal, telephone, or online
transfer. However, additional principal
payments will not preclude the automatic
payments as described above, unless they
equal or exceed the Minimum Payment Due
as of the next Payment due Date following
receipt of your payment. The amount of
the automatic payment, in such event,
will be the difference between the payment
received and the Minimum Payment Due. |
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Any
payment received will be applied first
to any accrued and unpaid Finance Charges,
returned check fees, and principal amounts
which exceed your maximum line of credit
and the remainder to the outstanding
principal. If you make a payment by Check
which is later returned unpaid, you will
be assessed our standard returned check
fee. |
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DEFAULT,
DELINQUENCY, OR SUSPENSION
If you fail to adhere to any part of this
agreement or break one of your promises
under this agreement, we may consider your
FirstReserve line delinquent or suspended.
In such event, we will make additional
advances from your credit line and you
will be required to make monthly payments
equal to the Minimum Payment Due. |
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ENTIRE
BALANCE DUE
When we notify you, at your last known address,
of termination of your FirstReserve Account,
we may demand immediate payment of the
entire amount owed as under the FirstReserve Agreement.
Any outstanding balances will bear post-judgment
interest at the current rate as explained
under Section V of this agreement. Any
reduction of your credit line through First
United Bank will not be considered a termination. |
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AMMENDMENTS
First
United Bank may amend this agreement
upon notice to you by mailing or
delivering written disclosure of
the proposed change not less than
fifteen (15) days prior to the beginning
of the billing cycle within which
the change will become effective,
except that no change adverse to
you shall be effective until the
first billing cycle beginning no
more than thirty (30) days after
the written notice of the amendment
was sent to you. |
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BILLING
RIGHTS AND ERRORS
If you think your bill or statement is
wrong or you need more information about
a transaction on your bill, write us on
a separate sheet at the address listed
below and/or on your account statement.
Write us as soon as possible. We must hear
from you no later than sixty (60) days
after we send you the first bill on which
the error or problem appeared. You may
telephone us, but doing so will not preserve
your rights under the Fair Credit Billing
Act. Include the following information
in your letter: (1) your name and account
number; (2) a description of the error
and an explanation as to why your believe
there is an error. If you need more information,
describe the item you are not sure about
and, if you wish, ask for evidence of the
charge, such as a copy of the receipt (Please
do not send the original copy unless you
have a duplicate); and (4) any other information
(such as your address) which you think
will help the Bank to identify you or the
reason for your complaint or inquiry. Send
your billing error notice or inquiry to:
First United Bank
ATTN: Customer Service, P.O. Box 16500,
Lubbock, Texas 79490-6500. |
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We
must acknowledge your letter within thirty
(30) days. Within ninety (90) days, we
must have either corrected the error
or explained why we believe the bill
was correct. After we receive your letter,
we cannot try to collect any amount in
question, or report you as delinquent of
the obligation. We can continue to bill
you for the amount in question, including
FINANCE CHARGES, and we can apply any
unpaid amount against your credit limit.
You do not have to pay any questioned
amount while we are investigating; however,
you remain obligated to pay the parts
of your bill that are not in dispute.
If we find that we have made a mistake
on your bill, you will not have to pay
the FINANCE CHARGES related to any questioned
amount. If we did not make a mistake,
you may have to pay FINANCE CHARGES and
you will have to make up any missed minimum
payments on the questioned amounts. In
either case, we will send you a statement
of the amount you owe and the date it
is due. |
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GOVERNING
LAW
This agreement and all extensions of credit
under your FirstReserve line of credit
are considered consummated when accepted
by us at our banking premises in Lubbock,
Lubbock County, Texas. This agreement may
be enforced in Lubbock, Lubbock County
Texas and shall be governed by applicable
federal and Texas State laws. This agreement
is not binding until signed by an authorized
bank representative. This agreement shall
be binding upon the inure to the benefit
of the parties hereto, their heirs, successors,
and assigns. The Borrower agrees and acknowledges
that the application form filled out by
the Borrower and submitted in connection
herewith is part of this agreement and
the terms are incorporated herein by reference. |
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By
signing the FirstReserve application,
I hereby certify that I have read and
understand the terms of the FirstReserve
account agreement. I understand that
all applicants and co-applicants will
each be jointly and severally liable
under all terms and conditions of this
agreement. |
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